Our Cash ISAs explained

If you’re looking for a savings account, a Cash ISA should be your first port of call. Quite simply, as you don’t pay tax on the interest you earn, it’s a great way to make the most of your savings.

Transfer My Cash ISA

If you hold a Cash ISA with another provider, you may be able transfer your funds to one of our Cash ISAs. Simply select an appropriate Cash ISA product below and complete the transfer authority form.

Download ISA transfer form

There are two different types of ISAs - Cash ISAs which are available to anyone aged 16 or over and Stocks and Shares ISAs which are available to anyone aged 18 and over.

How do Cash ISAs work?

In the current tax year, which runs from 6 April 2013 to 5 April 2014, you are allowed to save up to £5,760. This limit is commonly referred to as your ISA allowance and you are not able to exceed this. You can only subscribe to one Cash ISA in each tax year. You must not subscribe more than £11,520 in total to ISAs (Cash and Stocks and Shares) in this tax year. Once a new tax year begins, you can then add to your savings using the new tax-year allowance.

If you have saved the full allowance in one tax year, any money that you withdraw from your Cash ISA cannot be replaced until the new tax year begins. The examples below may help you to understand this better and are based on the current Cash ISA allowance limit of £5,760:

Example 1

• If you save £5,760 in a tax year and then withdraw £1,000, you cannot reinvest the £1,000 you have withdrawn as you have already reached your full allowance for that tax year.

Example 2

• If you save £4,000 in a tax year and then withdraw £1,000, you can still add the remaining £1,760 to your Cash ISA that you did not initially save, however the £1,000 that you have withdrawn cannot be reinvested.

If you don’t save £5,760 in a tax year, you won’t be able to carry forward any unused allowance into the next tax year, so if you can, it makes perfect sense to use up your full allowance every tax year to maximise the benefits of your Cash ISA.

Which Cash ISA is right for you?

As with any savings account, Cash ISAs vary in terms of the interest rate they pay as well as how flexible they are. That’s why it’s really important to make sure you choose the account that suits your specific needs and financial circumstances. Take a look at the following Cash ISAs to see which one is right for you.

Instant access accounts

Some Cash ISAs will allow you to withdraw your money whenever you need to and without a charge applying. This means you can be as flexible as you need to be.

This type of Cash ISA is right for you if:

• You know you will need to access your money fairly quickly
• You are unsure when you may need your money – it’s better to go for flexibility over a higher interest rate if you are in doubt

Notice accounts

With some Cash ISAs you will need to give notice to withdraw your money without a charge applying, for example, a 30 day, 90 day, or even up to a 120 day notice period. These are known as notice accounts and you’ll usually find that as the notice period increases, so does the interest rate you receive.

This type of Cash ISA is right for you if:

• You know you won’t need instant access to your money
• You would prefer not to lock your money away for a fixed period

Fixed-term accounts

There are also fixed-term accounts where you can withdraw your money during the fixed-rate period subject to a charge equivalent to a loss of interest. These accounts can range from one year up to five years, and like notice accounts, they usually pay a higher interest rate as the fixed term increases.

This type of Cash ISA is right for you if:

• You are happy to tie up part of your savings for a certain period of time
• You would like to earn more interest

Can Cash ISAs be transferred?

Yes, you can transfer a Cash ISA from one provider to another. This is known as an ISA transfer.

Virgin Money accepts transfers from other banks and building societies providing any money added in the current tax year is transferred in whole. For example, if you have £10,000 with your current Cash ISA provider and you have added £3,000 in this tax year, you must transfer at least £3,000.

If you do wish to transfer your money to us, we will make this as simple as possible for you by contacting your current provider to arrange the transfer of your funds (subject to the terms and conditions of your existing Cash ISA). All you need to do is choose an account and submit your application form along with a Cash ISA transfer authority form and we’ll do the rest.

ISA allowance limits

ISA accounts are subject to an annual allowance limit. This section explains these details.

What is a Cash ISA?

A Cash Individual Savings Account (ISA) is simply a savings account. An ISA lets you pay no tax on the interest your savings make within the ISA annual allowance. Every tax year you can save up to your annual Cash ISA allowance limit of £5,760. The tax year runs from 6 April to 5 April the following year. We have a range of options to help you take full advantage of your annual ISA allowance.

ISA allowance limits:

Current ISA allowance for a single tax year
Stocks & Shares ISA	Cash ISA and Stocks & Shares ISA
Up to £11,520	Cash ISA up to £5,760, Stocks and Shares ISA up to £11,520 (less any subscriptions made to a Cash ISA)

Please note that under HM Revenue and Customs (HMRC) guidelines, you can only subscribe to one Cash ISA in this tax year (6 April 2013 to 5 April 2014. The maximum you can subscribe in your Cash ISA is £5,760 and you must not subscribe more than £11,520 in total to ISAs (Cash and Stocks and Shares) in this tax year.

This is based on our current understanding of HM Revenue and Customs UK taxation law and practice which may change.

Wondering how to make the most of your tax-free allowance?

See how to Top up your Cash ISA. You can choose to add to your account in a number of ways, by Store, by post and online.

Break in Subscriptions

Please note that if you don't subscribe to your Virgin Money Cash ISA for a full tax year this is known as a break in subscriptions, we'll then need you to complete a fresh application form before we can accept any further subscriptions into the ISA. This is so we can meet with HMRC rules which say we need you to re-confirm key information such as your name, date of birth and National Insurance Number. In addition, you must sign the ISA Declaration again so you refresh your knowledge of the ISA rules.

If you wish to deposit to your Cash ISA and you didn’t subscribe last tax year, please;

• Download and print your break in subscriptions Cash ISA Application form
• Fill in your personal details, sign and return the form to us at;

Savings Operations
Jubilee House
Gosforth
Newcastle upon Tyne
NE3 4PL

No printer? No problem. Request a form from us and we’ll send it out to you as soon as we can.

Interested in a Cash ISA?

You can view all of our Cash ISAs we’ve mentioned, or we can help you to find a savings account from our entire range if you’re still not sure what type of account you want. Alternatively, if you would like to chat to us in person, please pop into your local Store or call 0845 600 4466* and we’ll be more than happy to help.

Find a Cash ISA account